How should the US Mint sell coins?

Burnie

Let's face it, certain coins from the US Mint have always been aquired purely for the purpose of flipping for profit. However, the difference since the advent of internet has been how purchases can now be made instantly, As we have all become more internet savvy the rules to purchase coins through the US Mint have been manipulated. People have learned how to use multiple accounts to overcome purchase limits, then there has been the use of bots and of course the over marketed hype by the US Mint and the big coin resellers, have all combined to create sellouts in minutes. The average collector or casual buyer is left with no other option other than pay a high premium on the secondary market or miss out all together.

The US Mint's recent attempt to address these issues has done little more than to create a new purchasing distribution process, which in my opinion is far more difficult and frustrating to navigate than the old system ever was. Secondly, the immediate reselling or flipping for many times over issue of certain coins is an indicator that the US Mint cares little about the secondary market (even if they are directly feeding it). I don't believe that the US Mint cares who gets what coins as long as they can sell what they produce. Don't misunderstand me, I'm all for making a profit, but let's not forget that the US Mint is in exactly the same business. The coins that the US Mint produces are obviously designed to appeal to collectors, which means they will also appeal to flippers.

It has been suggested that the intent of the US Mint's recent changes was to create a more equitable, easier to use system, one that gave more people a better chance to get the coins they wanted. However, in all of my recent attempts to purchase "popular" issues, I have had nothing but problems, with random success and overwhelmingly frustrating experiences. The fact that many of those popular issues are being re-sold for ridiculous premiums even before they have been minted or shipped out, should be enough for the US Mint to conclude that their website purchase portal redesign efforts have failed. If they really care about the collector, they need to completely overhaul the purchasing process, from how coins are distributed, sold, to even how they are priced.

What do you think? I'm interested in others thoughts as well.

Smudge

Stop trying to create artificial rarity.

derryb

The big reduction in household limits is driving up the number of successful mint buyers and the aftermarket price, at least initially. On the bright side, more flippers have an opportunity to double their money. All of my relatives now look forward to the next hot issue.

MsMorrisine

been discussed to death on other threads with no agreement

Onastone

I swear I already saw this thread...

ricko

I think this is one of the 'double threads'..... No added numismatic value Cheers, RickO

Burnie

@ricko said:
I think this is one of the 'double threads'..... No added numismatic value Cheers, RickO

Not everyone reads every thread 😄. I'm sure this has been discussed before. I'm simply sharing my frustration and those of many others. I would have thought that a forum that is filled with so many numismatic experts and collector's of all things shiny that other members would want to come to some kind of agreement and help the US Mint. Sitting back and criticizing just because a topic has been discussed previously is a little elitist. I'll look for the other thread and post there instead.

WCC

There isn't a solution to the problem you are presenting that will satisfy everyone or even necessarily most.

Striking to demand is the best collector option but will displease those who dislike declining prices in the secondary market, which is the trend I read for most new US Mint releases.

WAYNEAS

If Amazon can do it, so can the mint.
Let me see here, the mint manufactures money.
Amazon's system really works well. Mimic theirs.
The mint can always buddy up with the Bureau of Engraving.
"Say guys run me off some of those Ben's as I need to buy an item with a household limit of one."
Wayne

telephoto1

Most of the time the aftermarket value eventually decreases anyway on the flavor of the month issues. I like the idea of striking until XX date with no order limits, meaning everyone can get their fill until then, and the aftermarket can just take care of itself later.

olympicsos

Maybe the US Mint should go back to the old punch card ordering system of the 60s and 70s

Guxiyou

@WCC said:
There isn't a solution to the problem you are presenting that will satisfy everyone or even necessarily most.

Striking to demand is the best collector option but will displease those who dislike declining prices in the secondary market, which is the trend I read for most new US Mint releases.

This. The basic problem is the mint doesn't want to pick winners, and so they cannot solve the problem. They could solve it for collectors, or for investment, or for dealers, or for.... But since these groups have conflicting interests they would need different solutions. Even changing the household ordering limit is just shifting between the groups, trying to find a play of mutual but minimal annoyance.

gumby1234

Most people would be satisfied if they could order a coin and get it. The mint should take all the orders and then mint that many coins.

jesbroken

One to a person!
Jim

rooksmith

No auction - just allow pre-registration, one per household until those registrations are fulfilled. Then allow dealers to step in with a 10 -20 coin maximum. Verification of who is a dealer and who is a household should be done ahead of time. Any coins not sold that way should be returned to the mint for melting. After all, there is such a thing as too many coins. Rarity is a good thing.

MasonG

@rooksmith said:
No auction - just allow pre-registration, one per household until those registrations are fulfilled.

So instead of the website being jammed up with people trying to order when the coin goes on sale, the website will be jammed up when pre-registration opens.

@rooksmith said:
Verification of who is a dealer and who is a household should be done ahead of time.

How does that work?

gumby1234

@MasonG they could have a 2 or 3 month period in which people could order them. With no limits on the coins there would be no rush to jam up the system. Then strike the quantity that is needed to fulfill the orders. The only people that wouldn't be happy are the flippers.

WCC

@MasonG said:

@rooksmith said:
No auction - just allow pre-registration, one per household until those registrations are fulfilled.

So instead of the website being jammed up with people trying to order when the coin goes on sale, the website will be jammed up when pre-registration opens.

@rooksmith said:
Verification of who is a dealer and who is a household should be done ahead of time.

How does that work?

It's my inference that, unless they are collectors, Mint personnel preference is for Congress to stop authorizing these coins so they don't have to waste their time fooling with it. Only other exception is if their employment depends upon it.

Their second preference is to stop dealing with collectors and sell the full mintage to distributors as they do with bullion ASE.

One other problem I have read is that the Mint must cover all of it's costs, variable and fixed. Since very few of these coins have much collector appeal, the price apparently must be set above the true market value which is why most buyers end up losing money.

MasonG

@gumby1234 said:
@MasonG they could have a 2 or 3 month period in which people could order them. With no limits on the coins there would be no rush to jam up the system. Then strike the quantity that is needed to fulfill the orders. The only people that wouldn't be happy are the flippers.

Don't forget the collectors who would see their "investment" lose money. They won't be happy, either.

gumby1234

@MasonG don't they usually lose money especially if they couldn't get it from the mint and have to buy on the secondary market?

gumby1234

If the Mint wants have a limited edition say 5000 of something then they could hold a lottery so everyone would have an equal chance at being able to acquire the issue.

MasonG

@gumby1234 said:
@MasonG don't they usually lose money especially if they couldn't get it from the mint and have to buy on the secondary market?

Sometimes the secondary market is more expensive, sometimes, it's not.

gumby1234

Realistically thou for most Mint products the price comes down after the initial hype is over and the flippers have flipped. On occasion some rise in price. Or if bullion rises then those product rise. I remember when gold was around $300 an oz

MasonG

@gumby1234 said:
Realistically thou for most Mint products the price comes down after the initial hype is over and the flippers have flipped.

And then, people who bought those coins at the higher mint issue price are not happy and some of them stop buying from the mint. I don't think encouraging people to not buy from them is what the mint wants to have happen.

gumby1234

Well they are less happy if they pay crazy money from the flipper. Remember the 2001 Buffalo silver. 70dcam were thousands of dollars. Now 70dcams are around $300

EDIT- I just got a raw Buffalo silver for $70 heck they all pretty much grade 69 and 70 unless somebody mishandled it.

tahbb143

The BEP should send me pallets of uncut currency.

The Mint should give me first dibs on all products and I will pay with pallet currency.

This is the only way.

Zoins

@Smudge said:
Stop trying to create artificial rarity.

Agree. Mint to demand, no 1 minute sell outs.

HashTag

Yolo

mbogoman

Fix the ordering system. There should be a "one click" way to checkout. Why do we have to select "Default payment method" every time? Why do we have to select "Default shipping address" every time. "Default" means "if nothing else is selected, use this". If it is the default, you shouldn't have to select it. The way the mint uses "Default" is not a real default method; it's just one of the options you can choose.

privatecoin

Sell the bullion and proof strikes to collectors demand. Create random unannounced releases into circulation.

TwoSides2aCoin

I'll stick to thinking they should do PRE SALES on eBay with their trinkets. The same people who flip will have to bid with the masses for trying to corner the market.